tv Nightly Business Report PBS November 23, 2018 5:00pm-5:31pm PST
this is "nightly business report" with sue herera and griffeth. >> oil slick. crude prices fall to a one-year low as pressure builds on opec to cutroction irnlts deck the malls, black friday deals trau crowds as more shoppers move online. >> real estate, rush a amazon's two new headquarter locations open. potential buyers hope to get in before prices get out of reach. those stories and much more tonight on "nightly business eport" for friday, november 23rd good evening, everyone. and welcome. and happy friday. the decline in oil prices steepened on this holiday shortened trading sessiont e begin tonight with the stock market. the s&p 500 closed in correction
territory. meaning it is down more than 10% from the september closing high. that trop in crude didn' help. it push energy stocks lower proving to be drag on the broader market. by the "closing bell," t dow jones industrial average fell 178 to 24285. the nasdaq slid 33. and the s&p 500 was down 17. it was a rough week for all of the major averages, in fact, the worst thanksgiving week decline for the dow since 2011. and you could probably guess this. chevron and exxon were the two worst performing stocks in the dow, pushed lower by the price downude which settled nearly 8% to the lowest level in more than a year tay. it's nowost a third of its value just since the most recenc high on october 3rd. the concern is not so much a surge in supply but it's about fears ofl a gloconomic slowdown as well, which would soften jackie deangelis takes a look at
forces at play in the oil patch. plunge has: the oil taken some investors by surprise. the first0% drop of 2ame when the iran premium came off the table. but now prisec slidese the fundamentals are kicking in. u.s. output stands at 11 million barrels a day, the highest in years. opec at 33 million a day the a rei.nt mo demand forecasts aren't holding up. the market questions the strength of the ke in 2019. opec is another factor. producerers meetna in vin january 6th. with you would can can from an inflated base make a meaningfulbrifference? onight spot to the slide, lower gas prices. the national average for a gallon of regular is 2.58 ntcording to triple a. town 26 from last month. but still higher than this time last year.
a quarter saved per gallon for aa $16 gallon tank on ample is about $4. it does add up. but is that a big enough savings at holiday time to get shoppers spending significantly more? d with oil dangerously close to $50. the 40s could be in the again soon. there will be a point where low prices hurt big oil more than they help the chee. for nightly business report, i'm jackiedeangelis. today marks the unofficial start of the holiday shopping season. blackfriday, the day on which retailers have traditionally made enough sales to put them in the black for year. the national retail federation predicts that wallacen will be over the next few days both online and in stores. an courtney raying isn't monitoring the crowds looking for the bargains at the mall in woodbridge, new jersey. >> hi qb court. >> hi, sue. here at the mall traffic has picked up as the day moved forward, despite the door buster
deals offered on thanksgiving evening as departmen stores and big box retailers. black friday is expected to be the busiest day of the weekend on the busiest weekend of the year for retail. they say 70% of themericans ll shop this weekend. of that 70% more than 80% shop today. in store online or both. in fact we spoke to m shoppers who maye shopping until they drop. >> we went home, slept for four hours and left again at 5:30 this morning. we've been here since. leaving this mall woodbridge and heading to mental lo mallft this. >> and bed bath and beyond and anything else we can stop on. >> victoria secret, i think we go home first and drop off the. ba eat something, the left overs from yesterdaynd think about going again somewhere else. >> master card spending poll says $23 billion could be spent
on this black friday. $2 billion more than last black volumeand 40% more sales than of an average day during the holiday sunday.y online, a v big part of this. it's estimated that thanksgiving day send a news record the fastest growing retail day fore ecommeo date. sue back to you. thanks courtney from j woodbridge, nsey irnlt and one of the biggest challenges facing retailers this time of year is amazon. as jewely boorstin reports, the ecommerce is forcing giants liko target come up with new strategies. >> reporter: target gave shoppers a jump on black friday by opening stores thanksgiving. the key to keep registers iday ng over the h weekend, new strategies that integrate target's digital offerings and in store presence. catering t shoppers who want both options.
>> i think online is the best , optiakes away traffic and wait times and parking spaces and that hassle. >> i like to come to the store because it supports the stores 'md i like the chaos in there. and sometimes not a fan of ordering stuff online. >> for the first time target is offering drive-up, a free same-day service enabling guests to have items they ordered that day brought to their car and the parking lot. a great nk drive-up is way to use the existing stores and merge stores andmm ece. we think there are a number of of consumers that don't find convenien they pass by a target store or wal-mart to and from work, to and from schoo so drive-up can be a convenient way for the consumer to shop. >> and target's new skip the line technology enables guests to check out with a target employees are employee from mobile device in the store. >> in bolsters target as battle with amazon, expected to dominate half of all ecommerce sales this year by highlighting the convenience of target's brick and mortar presence while
also elinating the hassle. >> and when it comes to ecommerce, to step up competition with amazon's free shippi for prime subscribers for the first time target will offer free two-d shipping on thousands of items. with the option of same-day delivery in as little as one hour through start-up shipped and in store targetng is shini a spotlight on its best deals. including an expanded focus on toys with double the number of last year. >> target is my store. i come here and get all my things here. so now they have a little mtoe it's nice. and that they remodel the store was a big plus. >> target relies on the likes of 159 tvs under $300 and select video games to draw shoppers. ut target says all the investments to get shoppers in the store and online could be a drag on profits, tlaeft for now. for nightly business report, juliaoorstin in los angeles. >> target isn't the only retail we are a new strategy. consumer beckic stores best buy
is aiming to be a one sto shop. newk holland is in bedford, jersey. >> reporter: to get these hot black friday deals, many waited in the cold outside this best buy in new jersey. >> get out, get the experience. socialize a little bit. i know it's gearingodowards ever staying home. still nice to get out and see the crowds, you know. >>ohn coming for a flat screen leaving with a 55 inches and a sense of satisfaction. >> it was worth it it was. >> best buy executives say home devices like this from google he will be among best sellers. also flat screens like this from toshiba with the fire tv cluded and of course video games systems. in nintendo switch is one of the door busters. >> cybermonday is also pretty good. but i like to put y hands sometimes on the product and touch it. that's why i like coming to the stores.
>> the big box retailer is also focusi on toys for kids from barbie, lol dolls to nerve. >> moms like alysha are finding what they bought at toys are us before it shot down sfwlie i missoys "r" u i'm usually there first thing thursday. but without them i cam in ear utilized this. >> best buy like many retailers opened thanksgiving, catering to people hungrier for deals than turkey. >> i'm happy to be here, happy to be able to buy something and get sething on sale. >> consumer confidence took a recent hit according to a recent study but remains at historic highs. people here say they are readyng and willi to spend. wrote. ot a credit card this year and spending more than ever. >> the market is going down right now. but still i'm still spending stuff. it's black friday. why not. >> for nightly business report.
>> let's break down the potential real winners and los ers sh season. joining us is charlie sew shay celebrating 16 years as a the he retail analyst at moody's. everybody measures foot traffic. you were measuring. is that a realistic measure when we consider how much money has been spent online as well. >> we have to get away from blackg at the comp of friday year over year. foot traffic. i'm starting to use halloween as my openi day f the promotional season. as you move online you see people in stores. that's okay. we are focused at moody as at operating income fwo egt. we wante what you put in the bank. if you get a sale it doesn't matter where itomomes the online or the store. you just want the sale. and we've seen that this best by. the bes by online has contracted but the self store is
growing. anh all the online investments you make that's the mentality you have to have. >> so they are buying. >> yes. >> they feel better about the economy. so who stands to benefit from that? >> the big four, in i my portfoli wal-mart, target, amazon and best buy. c season s an electro for the most part. they have massive shares in the consumer electronics base. on the other t end of spruk, the department store, nordstrom looks really good. macy's is performg well. dillrds had an investmen grade rating. and the other end of the spectrum isho is suffering? the lower end of the rating category is really suffering. i mean knows are names we'll -- well series isn't there anymore because of bankruptcy. but niemann markus is down to jr . >> j.c penny. >> just a notch above for jcpenney. >> reall petsmart, everybody
loves the pets. >> the petnd space is siege. mikki covers pets for us. you have online as b is a player there. and wal-mart has a massive pet business. and you know with wal-mart people kind of forget about wal-mart and some some categories but wal-mart always had a strong pet business. amazon is moving to pet. >> quickly, each of the reporters we had highlighted ers all various reta try to pick up the ties r us business. >> it looksike amazon wrrmt and target will carve up the li 's share. >> and best buy. >> and best buy had the video business for years. and kindf dabled in toys. in year doubled down a little bi g makes senseen the dynamic with toys out on the market. that will be interesting. we are paying attention to that as well. >> fascinating. >> charlily oshay with moody analytics. i know you'll be busy channel surfing. >> yes i will >> thank you. still ahead atrophying off with a deal.
>> it's just not black frithy at malls it's also in auto dealerships. a crucial day for a end of the year push in the auto industry. i'm phil lebeau, that story coming up on nightly business report. nissan as ousted chairman carlos ghosn. wosn held that position since 2001. reported he was arrested machined in tokyo for allegedly falsifyi financial information. other reports say ghosn used the panese auto maker money to buy personal homes and to pay his sister for consultin jobs that she did not perform. now while black friday is huge for retailers in malls
it has become almost as important for auto dealers. november and december are two of the biggest months of the year them.les for and that's the case again this year. even though buyers are finding fewer deals. phil lebeau is in lyle, illinois, for us. >>eporter: breakut the bowes. the holiday sale season is revving up at autoip dealer this should be a busy one starting with black friday. >> what n wemally see with black friday deals is we see this really just like pinpoint laser focus on that weeken but what's happening now is we expect to see the deals threw the end of the monthe and in s cases in december, which is actually giving us a little bi more top shopping time. >> this year buyers are looking for bigger rides. pickups and suvs remain red h
thanks in part to auto makers offers more to choose from and gas prices move lower well under $3 a gallon. butre the buyers getting holiday deals this year? it depends on the model. a car or sedan, heavy discounts maybe not as much porp popular cross overutility vex and while there are some hads for theic g the reality is higher interest rates means is costs autoakers moreo write a loan at zero percent. >> manufacturers a pulling away from that and offering cash ikebts or discounts things that. but we are seeing noticeably less zero percent offer than in the past. >> with the strong economy and high consumer confidence buyers are looking to wri home a new ride for the holidays. >> if the holiday sale season is as robust as auto makers and dealers hope then 2018 sales should top 17 million vehicles. fourthuld be the
straight year it has happened, something we haven't seen before in the united states. phil lebeau, nightly business report, lyle, illinois. >> china gives approval to a big egdustrial merger that's where we the market focus. united technologies received anti-trust approval from china the 23 billion-dollar purchase of rockwell collins. as with u.s. andea eur regulators chinasks for united technologies to sell off certain assets. united tech rose 2.5% to 129.04. rockwell collins up 9% to 141. 3. tesla is did you telling the price of the model x and model s cars in cna. the discount will be between 12 and 26%. the decision comes ahid the severe trade tensions between the u.s. and chf. in a statement the electric car company says it's absorbing part of that tariff h top make its cars aordable. china has you may know is the world's top auto market. shares rose about 4% to 325.83.
visa and master card have reportedly offered to trim merchant fees in europe for card payments by tourists. according to reuters, the paymenai networks are to be trying to avoid fines related to overti-trust investigation there. shares of visa fell 1% to 132.87. master card was down 2% to 182.60. and the ceo of overis temg the "wall street journal" he expects to wrap up a sale of the cousany's retailess by february. although he did not name any potential buyers, overstock is going to shift its strategy and focus to cryptocurrencies and new blockchain trading system. sending the shares up 23% to 20.93. time for the weekly market monitor who likes stocks somewhat immune to trade teions. he is oliver porch at abroader brothers. >> welcome >> good to be back.
>> you say lower trade sensitivity, diversified revenue streams and low cyclicality is kind of the bro brushor the three picks, correct. >> absolutely. so we're in a tough market. we have seen it throughout tober and november. you want to be defensive but that doesn't mean yo have to into cash. there is plenty of opportunities, especially after the selloff. >> all right. so let's talk the top retail pick you have because 'tis is the season f >> retail i from dead. and we see tremendous early numbers for this big shopping iliday for amazon. and amazon the big winner there. and after being sold off by over ks% along with the rest of the fang stoc, this is both a value play as well a as retail play and fwroegt a sto we love it a long-term basis. >> you have a growth and income play, verizon pretty rich dividend, 4% right now. ol >> dividend, balance sheet, good growth prospect. telecrom o come with 5 g coming
the next year or so are going to bend tres. the telecom sector as a whole underperformed but verizon has shone and done well. we think that continuing. forit ae bit more growth yoernted income oriented investors verizon plays well. >> here is another telecom pick but a top dividend pick bce group. >> canada's largest media company and telecom company. 5.5% dividend. slow and steady. again this is probably the most conservative of the three stock picks we just reviewed. if you are looking for yield and going to own the stock for several yrs bce is a terrific play. >> and again to emphasize you're looking for companies that you feel can weather whatever is coming here in terms of arowth slowdown, rising interest rates, tariff wars things like that. >> absolutely.ea. we want to somewhat be immune, anti-cyclical. no one is predicting the u.s.
economy or world economy is comingcro aching halt but a slowdown is fairly evident. the trade war with china is going to be an issue well into 2019. ere is potential issues with europe. so you want to kind of insulatel yourself from these things as best as possible. and given the recent selloff these are three names that can do that. >> on that note oliver thank you. >> thank you. >> oliver porsche with abroerman brothers. the the housing market may be cooling in many parts of the country. but two exceptions.sl longd city new york and arlington, virginia. all thanks of course toam on's recent announcement it will locate two more headquarters in those locations. and it didn't take more than a minute for real estate demand there to sky rocket. diana olick has details. >> in entire cue is sold out. >> at brand ewe kondo tower in long island, new york. throngs of buy frers far and
wide swarmed in sunday openhouse. >> the numbers have really quadrupled because o announcement and location of in building process. >> investors and potential residents alike were hoping to et in before prices get out of reach. >> i think they're inflated now. >> yes, definitely thi s are going up tremendously. >> in fact some developers even delied several units waiting to reprice them later when they see th new demand.nt real estate aatrick smith saw it in a matter of minutes. >> it was like a switch -- someone hit a switch and the w markett from a buyers market to sellers market overnight. >> because agents and owners saw what amazon did for seattle's housing market. >> in many locations in seattle, the median home price doubled. everyone is lking at that, home buyers, developers and investors, trying to figure out how much money they leave on the table if any sell now rather than waiting. >> on the tuesday amazon made the announcement traffic on
realer to.commed jumped 200%% r long island, york new york and arlington, virginia. >> and while there is a lot of inveory in long island city, supplies are lower in the d.c. area, especiallye for sin family homes. and real estate agents say potential sellers are not jumping to list properties. instead they're waiting to see prices move higher first. >> d see a possibility of a shortage of homes. right now a mothreh supply, we don't have an abundance of homes available. >> so as demanded suddenly juchs rsey expect prices to follow. >> the sel will get back in the driver seat again. >> in other words, unlike shopping o amazo itself, buyers will not see many bargains. for nightly business report, ana olick in washington. and coming up, small business hopes fortu a very big ay.
tomorrow is expected to be a big day for mom and pop retailers, small business saturday as it has become known is estimated to bring in billions of dollars each yea for main street's iependent retailers and restaurants. kate rogers has more. >> reporter: se ofhese are our biggest sellers. mackenzie there is nothing small about small business saturday. >> it's our busiest year. f the >> the american express sponsored holiday inn the ninth year is sandwiched between black friday and cybermonday. encouraging shoppers to get out to support local retailers,
restaura is and more both person and on the web. mackenzie has been participating sinc the start and says nearly a decade in there is barely room tond sta in the queens, new york retail shop on small business saturday. in fact that single day accounth for holiday season sales. >> in this neighborhood they are maained to knows in the day you come and support businesses. they are not just coming to do holiday shopping but want to be here to support us. it's about the show. and it's hyped. >> reporter: more than 80% of consumers say they plan to shop small either in person or online according to data from americas expr and the national federation of independent business. andast year customers spent $13 billion on small business saturday. >> ecommerce platform etsy is known for connecting shoppers with the 2 million small business sellers online. this year is brings the shopping experience to life with pop-up shops in cities across the country as well as mar online shops. >> small business saturday is is
a great chance to drive awareness and keep businesses top of mind. mass retailers play aat g role in convenience and price. but when you shop from a small business there is a story behind what you are buying. and it's so much more personal and thoughtful. especially for the holiday season. >> reporter: dog pro se brand crew law law makes bow tie collars leashes and more. . giving back some of its profits to animal revoke. tp is in person and on am the south carolina store front. the small business saturday sales the past years have doubled. >> 40% o our customers from small business saturday were first time customers. of the 40% 65% turned into returning customers. having a day that really shows the support to the community is -- is really inspiring. it hsps kind of fuels us the rest
of the year. >> for nightly business report, i'm kate rogers. >>ea and you can more about small business saturday on our website, at nbr.com. >> before we go a look at the final numbers on wall street. the dow fell 178 points, the nasdaq slid 33. s&p 50 down 17. all of the major indexes were lower for the week. and that will do it for us ig tonight forly business report. i'm sueth herera >> i'm bill griffeth is it the weekend already. >> it is. >> have a wonderful one. we'll see you again on monday.
>> this is "bbc world news america." funding of this presentation is made possible by the freeman foundation, and kovler foundation, pursuing solutions for america's neglected needs. and now, "bbc world news." kasia: this "bbc world news america." i'm kasia madera. a warning and a challenge to president trump on the environment. a u.s. government report says